PART 1
(OPEN TO THE PUBLIC)
ITEM NO.
REPORT OF THE CHIEF EXECUTIVE
TO:
THE LEADER OF THE COUNCIL
TITLE:
Chief Executive’s Financial Monitoring to October 2005
RECOMMENDATIONS:
1.
That Leader of the Council notes the position of the Directorate as at the 31st October
2005 and receives further reports throughout the year when continuous monthly
monitoring has been performed.
EXECUTIVE SUMMARY:
This report details the current position for the 2005/06 Chief Executive’s Directorate
Budget.
BACKGROUND DOCUMENTS:
(Available for public inspection)
Budgetary Control File
Financial Information from SAP
ASSESSMENT OF RISK:
Failure to monitor the Budget and instigate appropriate actions of findings
can lead to significant over/underspends in 2005/06 that will affect the
financial health of the City Council.
THE SOURCE OF FUNDING IS:
Not applicable as the report is commenting on the financial position.
LEGAL ADVICE OBTAINED:
Not required for this report.
FINANCIAL ADVICE OBTAINED:
Report prepared by the Group Accountant for Chief Executive’s.
CONTACT OFFICER:
Wendy Gregory 0161 793 2906
WARD(S) TO WHICH REPORT RELATE(S):
All
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KEY COUNCIL POLICIES:
CITY COUNCIL REVENUE BUDGET 2005/06
DETAILS (Continued Overleaf)
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1
Chief Executive’s Budget 2005/06
1.1
The current projections are based on the position, as at 31st October 2005.
Further reports throughout the year will indicate any areas for concerns and will
highlight areas for discussion with Section Heads.
1.2
The budget shortfall on the Performance Development section has been
addressed and the full budget requirement for this financial year is now shown in
the table.
1.3
The summary position including all expenditure and income to date is shown in
the table below:
Cost Element
2005/06
Budget
Budget to
date
Exp
to date
Variation
MAINSTREAM DIRECTORATE BUDGET
Executive Services
Crime and Disorder Mainstream
Crime and Disorder Externally funded projects
Economic Development
Chief Officers
Reneration Co-ordination and Strategy
Other Strategy, Resources and ED.
Opportunities Centre
Events
Regeneration Initiatives
MIDAS
Miscellaneous
Grant Income
Scrutiny
Performance Development
Document Management
Marketing and Communications
Central Recharges
Within Directorate Control
198,370
537,370
589,240
438,210
204,292
75,880
71,560
134,000
256,972
456,119
92,000
1,646,220
613,742 5,313,975
Corporate and Dem - Recharges
Capital Charges
Budget to be apportioned
3,676,875
43,260
-
-
-
-
Outside Directorate Control
3,720,135
-
-
-
Chief Executives Total Budget
9,034,110
1.4
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124,338
274,833
267,430
253,954
328,227
368,363
58,950
44,263
35,780
134,000
2,611,533
162,132
261,900
48,000
1,230,882
23,212 6,181,373
6,181,373
132,078
217,814
267,430
260,939
385,693
357,472
56,323
32,444
11,518
134,973
2,611,568
163,409
264,878
48,001
1,216,186
12,594
6,148,131
-
-
-
6,148,131 -
7,740
57,019
6,986
57,466
10,891
2,627
11,819
24,262
973
35
1,277
2,978
1
14,697
10,618
33,242
33,242
There is currently an underspend on the budget, but consideration must be
given to the following:
2
Salaries
2.1
There is a favourable variance of £109k, which is predominantly due to
vacancies within the Community Safety Unit and within the Marketing and
Communications section.
2.2
It is anticipated that the trend within the Community Safety Unit will continue
until December, when posts will start to be filled. The savings will be offset by
the costs of recruitment and training and the costs of covering posts.
2.3
Furthermore, in order to keep the Directorate budget balanced the use of this
favourable variance must be considered in light of the adverse variances
elsewhere in the budget.
3
Economic Development
3.1
4
There is, at present, an overspend in this area due to marketing costs incurred
this financial year, due to late submission of invoices. The Section Manager will
discuss how these can be managed with the Marketing section and this will be
monitored for achievement as the year progresses. In addition, whilst the section
is not currently achieving it’s vacancy saving there are currently a number of
vacancies which will assist in achieving the overall budget.
Regeneration Initiatives
4.1
5
Although the budget is currently underspent, it is anticipated that it will be spent
by the year end.
Chief Officers
5.1
6
There is currently an overspend in this area and close monitoring will help to
control and identify other areas within the budget where the underspend can be
utilised to balance this overspend.
Grant funded programmes
6.1
7
The spend in this area is wholly funded by grant which is applied at the year
end. Rigorous quarterly and monthly monitoring of these programmes takes
place to ensure that expenditure is authorised and eligible. The programme
monitoring reports are discussed and scrutinised in detail at several forums
including the SRBV Executive and NDC Partnership Board.
Marketing and Communications
7.1
Work has developed and a budget for this area has now been approved that
meets both the day to day operational needs of the section for 2005/06 and
future years and for the required projects to be undertaken.
7.2
The recent establishment of the Section meant that in order to raise the profile of
the City and obtain early wins that the projects budget would always be front
loaded in 2005/06. It was of therefore no surprise that a budget of £560k was
required in 2005/06 compared to the original allocation of £500k with this being
balanced by reducing the budget in 2006/07 to £440k. Therefore this budget is
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still balanced at £1m over the two years but there needed to be some
adjustments to the pro-filing.
7.3
The following table gives the details of the spend to date and shows that the
small underspend in the current year is predominantly due to the vacant Head of
Marketing post. The overall budget is likely estimated to be on target at the year
end. There are however many offsetting lines as explained below:
Marketing and Communications
2005/06
Budget
Budget to
date
Exp
to date
Variation
Projects
Branding
Changing Perception
Industrial Heritage
Customer Panel
Triathlon
Culture Festival
Tourism Collateral
Total for Projects
10,360
239,090
52,760
17,890 189,600
40,780
10,150
560,630
10,360
239,090
75,760
5,000 140,000
37,000
10,150
507,360
10,849
241,947
67,934
5,361
139,698
36,990
9,150
501,207
Corporate Marketing
Visitor Marketing
Web Development
Creative Services
Worsley Tourism Strategy
Campaign Spend
AGMA
Industrial Power House
Operational Spend
Comms and PR
Life in Salford
On in Salford
City Merchandise
Total General Marketing Activity
392,490
368,650
73,490
113,100
109,860
12,000
16,000
1,085,590
286,653
218,335
42,869
57,225
10,000 20,842
20,000
53,299
7,000
27,300
723,522
290,630
203,332
43,482
91,627
10,000
5,311
20,842
21,076
17,921
2,094
21,653
6,405
605
714,979
Total for Marketing and Communications
1,646,220
-
489
2,857
7,826
361
302
10
1,000
6,153
General Marketing Activity
1,230,882
-
3,978
15,003
613
34,402
5,311
1,076
35,378
2,094
14,653
20,895
605
8,544
1,216,186 -
14,697
-
-
-
7.3.1 Creative Services
Although this budget is currently overspent, the manager is predicting that more
income will be received than originally planned which will mean the section is
forecasting achieving a break even position with potentially a small underspend.
7.3.2 Visitor Marketing
The underspend in this area is due to holding vacant posts within the Tourism
section, in order to achieve the vacancy savings for the section as a whole.
7.3.3 AGMA and Industrial Powerhouse
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These are external funds which are managed internally but funded externally.
Funds for these will be claimed at year end.
7.3.4 Operational spend
This budget is underspent due to the vacant Director of Marketing post. This will
be offset by the costs of honoraria for acting up into this post and consequential
backfilling of other posts.
7.3.5 Life IN Salford and On IN Salford
The Life IN Salford Publication has now ended and overall the two publications
show a balanced budget. A revenue growth bid has been submitted for the
future publication to replace LIFE.
8
Other issues
8.1
Accommodation is currently being considered and there is a possibility that there
will be expenses relating to moving offices which cannot be covered under any
budgets that may be available for office moves.
8.2
Consideration should be given at the planning stage of the costs of these moves
in order to accommodate any requirements in the budget at the earliest
opportunity.
9
Conclusion
9.1
At this stage in the financial year, monitoring will continue to ensure any issues
are raised as early as possible and that there is a balanced budget for the
Directorate as a whole at the year-end.
9.2
Staffing underspends within Community Safety unit are likely to continue until
December.
10
Recommendations
10.1
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That Leader of the Council notes the position of the Directorate as at the 31st
October 2005 and receives further reports throughout the year when continuous
monthly monitoring has been performed.